Sydney’s Liverpool City Council says it will initiate legal action against the New South Wales government following claims of widespread dysfunction. 

The NSW government has announced a public inquiry into the council, alongside plans to delay its September elections, citing an investigation that unearthed conflicts of interest and operational issues.

The council faces potential management by an independent administrator after an interim report highlighted serious concerns, including flawed recruitment processes, procurement irregularities, and accusations of a toxic workplace environment. 

Liberal Mayor Ned Mannoun has dismissed the findings as “a shopping list of unfounded allegations”. He said the government's actions are “a politically motivated attack”, and accused the government of attempting to silence voices in Western Sydney.’

“This is an attack on our community,” he said this week. 

Councillors voted on a motion proposed by Mannoun to initiate legal proceedings against the state government. 

The motion, supported by five Liberal councillors including the mayor, was opposed by Labor-aligned councillor Betty Green and independents Karress Rhodes and Peter Harle. 

Rhodes defended her support for the public inquiry, stating it would allow the council to clear its name.

“If we do not take this opportunity, you're going to leave a large question mark out there in the community that will not go away,” she said. 

Green emphasised the need for transparency, saying; “Sunlight is the best disinfectant”.

Local Government Minister Ron Hoenig says he has communicated to Mannoun the intention to suspend the council, citing issues identified in the interim report as sufficiently serious to warrant such action. 

If the suspension proceeds, an interim administrator will oversee the council's operations, with the council given seven days to respond.

Mannoun condemned the timing of the decision, stating that taking such action 50 days before an election is “completely undemocratic”.

The interim report includes allegations of jobs within the council being allocated based on factors other than merit, with direct appointments linked to political connections. 

Mannoun is accused of appointing a former private sector solicitor to a $250,000 role, which he denies. Another director is alleged to have hired two immediate family members. 

The council’s operations include substantial redevelopment projects around the under-construction Western Sydney Airport, impacting a population of approximately 250,000.

Liverpool City Council’s legal challenge will seek to prevent or restrain the minister from conducting the public inquiry, postponing the election, and suspending the council. 

The interim report and public inquiry's terms of reference are accessible here.